The mobility and fungibility of money makes it possible for multinational groups to achieve favourable tax results by adjusting the amount of debt in a group entity. The 2015 Report established a common approach which directly links an entity’s net interest deductions to its level of economic activity, based on taxable earnings before interest income and expense, depreciation and amortisation (EBITDA). This approach includes three elements: a fixed ratio rule based on a benchmark net interest/EBITDA ratio; a group ratio rule which allows an entity to deduct more interest expense based on the position of its worldwide group; and targeted rules to address specific risks. Further work on two aspects of the common approach was completed in 2016. The first addressed key elements of the design and operation of the group ratio rule, focusing on the calculation of net third party interest expense, the calculation of group-EBITDA and approaches to address the impact of entities with negative EBITDA. The second identifies features of the banking and insurance sectors which can constrain the ability of groups to engage in BEPS involving interest, together with limits on these constraints, and approaches to deal with risks posed by entities in these sectors where they remain.

More than 60 delegates from 14 countries gathered in Vilnius for the first regional meeting of the Inclusive Framework on BEPS in the region. This meeting was the last of a series of regional events in 2016 intended to offer countries in different regions of the world the opportunity to feed their views and provide their input into the Inclusive Framework on BEPS.

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This paper examines the impact of tax and benefit systems on the incentives for second earners to enter formal employment. The paper highlights how various tax design features create greater participation disincentives for second earners than for primary earners or single individuals.

Monaco today deposited its instrument of ratification for the Convention on Mutual Administrative Assistance in Tax Matters ("the Convention"). By doing so, Monaco underlines its commitment to fighting tax evasion and avoidance and takes another important step in implementing the Standard for Automatic Exchange of Financial Account Information in Tax Matters developed by the OECD and G20 countries.

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I am delighted to have this opportunity to discuss a topic that goes to the heart of the OECD’s mission, and to the heart of our collaboration with the Slovak Republic: improving tax fairness and tackling tax evasion. This year, both the OECD and the Slovak EU Council Presidency have made an important contribution to making international taxation fair and effective.

The OECD’s work to advance tax certainty specifically includes work to improve the timeliness of processing and completing mutual agreement procedure (MAP) cases under tax treaties and to enhance the transparency of the MAP process. As part of that work, the OECD makes available annual statistics on the MAP caseloads of all its member countries and of non-OECD economies that agree to provide such statistics.

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Fifty delegates from sixteen countries, four international organisations, business and civil society gathered in Manila for the first regional meeting of the Inclusive Framework on Base Erosion and Profit shifting (BEPS) in the Asia-Pacific region after the launch of the Inclusive Framework in Kyoto on 30 June-1st July 2016.

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Consumption Tax Trends provides information on Value Added Tax/Goods and Services Tax (VAT/GST) and excise duty rates in OECD member countries. It also contains information about indirect tax topics such as international aspects of VAT/GST developments and the efficiency of this tax. It also describes a range of taxation provisions such as the taxation of motor vehicles, tobacco and alcoholic beverages.